14 Nov 2009

Gloomy outlook for Auckland economy

5:31 pm on 14 November 2009

The short-term prospects for New Zealand's biggest regional economy have been described as unstable in a new report.

Projections for Auckland for the next three years show sombre prospects for manufacturing and only modest growth in employment.

The report, by economic researcher BERL and AUT's Institute of Public Policy, says on the bright side, Auckland went into recession earlier than the rest of the country and may emerge from it sooner.

It forecasts unemployment in Auckland in 2012 of 6.4%, with a nationwide rate of 6.8%.

Director of the Institute of Public Policy David Wilson says the formation of the Auckland super-city council provides a chance for a bigger effort to lift regional productivity.

Mr Wilson says an example of what the Auckland region could achieve jointly with the Government is the proposed innovation centre for the food and beverage industry to test new products.